FreeSeas enters term sheet for $10M investment

FreeSeas announced that it has entered into a non-binding term sheet with an institutional investor for an investment of $10M into the company through the issuance of zero-dividend convertible preferred stock and warrants, subject to certain terms and conditions. Upon signing the transaction documents, the company will sell to the investor $1.5M of units, each unit consisting of one share of preferred stock and a warrant to purchase one share of stock for every share that the preferred stock is convertible into. On the date after effectiveness of the registration statement, the company will sell to the investor $8.5M of preferred stock and warrants.